by Nse Essiet Sunday

Created on: July 31, 2008

WHY BUSINESSES FAIL

Businesses are set up according to individual country's relevant laws to exist in perpetuity, make profit, and aid government in human capital and infrastructural development through job creation and Corporate Social Responsibility (CSR). Failing in the above defined roles can be attributable to myriads of factors and cofactors which have been discussed by business gurus and enthusiasts around the world and which continues to generate debates and quantum researches globally. Why, therefore, would a company which is set up to outlive its owners hit the rocks? It takes more energy to cry than smile. Painful as it is to owners, employees and their families, industry regulators and government, the cankerworms still continue to cause anaemia in the global corporate landscape, geometrically. Funny as the following thoughts are underlies the seriousness of the endemic nature of many small, big, and global businesses which symptoms continue unnoticed or noticed with impaired attention given to its turnaround. What an issues on brand losses!

The following are surgical issues on why thriving businesses fail:

1. Corporate misdirection myopic vision, hamstringed mission, immoral values
2. Poor business governance/impeachable leadership actions and inactions
3. Corporate multi-incompetence
4. Caps-in-hand management style
5. Babysitting and bankrupt managers poor in strategic authority
6. Nauseating strategy formulation and communication
7. Absence of chessmasters' leading to bad business moves
8. Poor strategic intent due to corporate contentment and ill-ambition
9. Laughable strategic posture
10. Warped strategy implantation and implementation
11. Loss of strategic antennae
12. Loss of creativity/innovativeness unsupportive of intrapreneurship
13. Resistance to change
14. Corporate anorexia/inertia no momentum and excellence drivers
15. Absence of balanced, integrated performance scorecards
16. Absence of institutionalized strategic intervention mechanisms
17. Conflict-ridden structure
18. Selection process/recruitment dysfunction
19. Ill-motivated workforce
20. Poor staff involvement and empowerment in decision making
21. Lopsided organizational learning
22. No culture/ideologies no reform of understanding
23. Surrendering to traditions without recourse to critical reflections
24. Human capital ill-development
25. Celebration of mediocrity
26. Debatable corporate integrity
27. No social, spiritual and emotional intelligence cum capital
28. Corporate atheism
29. Inimitable adaptation/poor

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